Dr Joan Costa-Font

This course is available on the MPA in Public Policy and Management, MPA in Public and Economic Policy, MPA in Public and Social Policy, MPA in Social Impact, MSc in Culture and Conflict in a Global Europe, MSc in Culture and Conflict in a Global Europe (LSE & Sciences Po), MSc in European and International Public Policy, MSc in European and International Public Policy (LSE and Bocconi), MSc in European and International Public Policy (LSE and Sciences Po), MSc in Local Economic Development, MSc in Political Economy of Europe, MSc in Political Economy of Europe (LSE and Sciences Po), MSc in Political Science and Political Economy and MSc in Urban Policy (LSE and Sciences Po). This course is available with permission as an outside option to students on other programmes where regulations permit.

With the expansion of processes of economic integration and disintegration  in the European Union the traditional economic role of the state requires redefinition. Monolithic states progressively become more flexible structures to respond to constituents demands. This is especially the case of those policy areas that are highly relevant for European citizens such as language, culture and welfare. This course draws upon new political economy and social economics theories to study the design of formal and informal institutions in European Union member states and the European Union as a whole. Given that the European Union is progressively evolving towards some unique form of federalism, the course discusses how theories of political and fiscal federalism, constitutional political economy as well as new social economics can help to understand and inform the process. The course covers the design of both fiscal and political decentralisation process with a European perspective, and particularly it examines inter-jurisdictional competition between different levels of government and its role in giving rise to ‘institutional convergence’ with European Union member states.  It covers the constitutional design of the European Union and the effects of European integration on the design of the welfare state. Finally, it examines the economics design of informal institutions including the economics of 'language', 'culture', 'ideas', and finally 'identity', to study the presence of ‘cultural; convergence in the European Union.

10 hours of lectures and 15 hours of seminars in the LT. 1 hour of lectures in the ST.

Students on this course will have a reading week in Week 6, in line with departmental policy.

Two essays of up to 1,500 words each

Albert Breton (1996) Competitive Governments. An Economic Theory of Politics and Public Finance, New York: Cambridge University Press). Alesina, Alberto, Guido Tabellini, and Francesco Trebbi. "Is Europe an optimal political area?." Brookings Papers on Economic Activity (2017): 169-214.

Exam (100%, duration: 2 hours) in the summer exam period.